The present invention relates generally to the retail industry and more particularly to the use of radio frequency identification (RFID) technology in the retail industry.
An article of commerce is typically delivered from a supplier (e.g., a brand owner or vendor) to a buyer (e.g., a retailer or brand owner) through a multi-stepped process which is commonly referred to in the art as the retail supply chain. Specifically, referring now to FIG. 1, there is shown a simplified block diagram of one common version of the retail supply chain, the retail supply chain being identified generally by reference numeral 11. In the first step of supply chain 11, a retailer 13 places a purchase order (i.e., an order to purchase product at a specified price) with a supplier 15, the purchase order placement step being represented generally by arrow 17. In response thereto, supplier 15 instructs a manufacturing facility 19 (e.g., a factory) to manufacture product in accordance with the purchase order, the instruction step being identified generally by arrow 21.
In the retail industry, articles of commerce are traditionally provided with one or more identification media (also referred to herein simply as tags, tickets or labels) to communicate pertinent information relating to the articles. For example, an article of clothing is commonly provided with a permanent label which may inform a consumer of, among other things, the name of the manufacturer and/or instructions for washing the article. As another example, an article of clothing is commonly provided with a removable tag which is designed for separation from the article after purchase, the removable tag informing a consumer of, among other things, the price, size and style of the article at the point-of-sale.
Accordingly, it should be noted that, as part of step 21, supplier 15 may additionally instruct manufacturing facility 19 to manufacture any tickets that are to be used in conjunction with the manufactured articles (e.g., shipping labels, price tags, etc.). In the present patent application, references to “manufacturing” and “production” of tags, labels or tickets signify the imprinting and/or encoding of these media, not the fabrication of the media. Some manufacturing facilities possess the equipment and technology to impart different types of data onto each identification tag (i.e., data which can be read using different types of conventional data retrieval technologies). For example, manufacturing facility 19 may impart human-readable printed matter onto a surface of the tag which, in turn, provides a potential customer with relevant details relating to the article (e.g., the size and/or price of the article). As another example, facility 19 may impart information onto each tag which can be automatically retrieved by a computer using an automatic data capture instrument (e.g., a scanner or reader). For instance, a printed bar code system is one well-known and widely used system in which data provided on a tag is automatically captured by a computer using a bar code scanner.
However, as can be appreciated, the production costs associated with the printing, sorting, packing and shipping of individual labels (e.g., labor, equipment and facilities) are often too large for a product manufacturing facility to absorb. As a result, many retail companies often out-source either a portion or all of their ticketing services to a specialist in the ticketing industry. Avery Dennison Corporation of Pasadena, Calif., is widely regarded as an innovator and pioneer in the retail ticketing services industry. TICKET EXPRESS™, which is a well-known retail ticketing service presently commercialized by Avery Dennison Corporation, utilizes a network-based ticketing system to promote efficient and accurate ticket production and management services.
Accordingly, if manufacturing facility 19 is not suitably equipped to meet the ticketing demands of the purchase order, the ticketing services may be alternatively directed to a ticketing service bureau 23 that specializes in retail ticketing services (e.g., Avery Dennison Corporation's TICKET EXPRESS™ retail ticketing service bureau), this directing step being represented generally by arrow 25 in FIG. 1. Having received the ticketing requests for the purchase order, ticketing service bureau 23 generates all the necessary tickets and forwards the tickets to manufacturing facility 19, as represented generally by arrow 27.
Once the product and all of its corresponding tickets have been manufactured, manufacturing facility 19 affixes the tickets to the product. At this time, manufacturing facility 19 commences its product packing process. It should be noted that various types of traditional packing hierarchies are commonly used in the retail industry. As one example, individual items which are tagged in conjunction with the purchase order are often packed within a carton which is, in turn, provided with an identification label. A plurality of the cartons may then be packed within a pallet, the pallet being provided with a shipping label to facilitate accurate transport. As can be appreciated, numerous varieties of packing hierarchies are commonly employed in the retail industry. However, for purposes of simplicity, the present invention will be described in conjunction with the aforementioned items-cartons-pallet packing hierarchy. Nonetheless, it is to be understood that the present invention is not limited to the aforementioned packing hierarchy but rather could be used with alternative types of conventional packing hierarchies (e.g., an items-prepacks-cartons-pallets-shipping container packing hierarchy) without departing from the spirit of the present invention. It is also to be understood that use of the term “product” as defined herein relates to any object to which a label may be secured, such as an item, carton, pallet, etc.
The packed and labeled pallet is then transferred from manufacturing facility 19 to a freight consolidator 29 for shipment, this transfer step being identified generally by arrow 31. In compliance with the purchase order, consolidator 29 then ships the pallet to a specified retailer distribution center 33 (e.g., a retailer warehouse) in the most efficient and economically advantageous manner, as represented generally by arrow 35 in FIG. 1. If necessary, the pallet is opened at distribution center 33 and the particular product requested in the original purchase order is delivered from distribution center 33 to retailer 13 (e.g., as part of a smaller package), the delivery step being identified generally by reference numeral 37. Once received at retailer 13, the product is then displayed for sale.
For many years, the retail industry has relied on automatic identification (auto ID) technologies to facilitate product tracking at various stages throughout the supply chain. For instance, by periodically capturing a unique identification code that is provided on a traditional shipping label, a retailing management system is able to effectively track the product to which the label is affixed throughout the supply chain. As will be described further in detail below, the ability to track a product throughout the supply chain provides a number of significant advantages (e.g., improved efficiency and greater visibility).
Bar code systems are commonly used to track the location of a product throughout the supply chain. Simply stated, a bar code is a stamp-sized patch of parallel lines that may vary both in their individual thickness and in the spacing between successive lines. Using a bar code reader, which includes the combination of an infrared or light emitter and an optical detector, the pattern of lines in a bar code can be captured by a computer which translates said pattern into a numeric code that, in turn, can be used to store and/or retrieve data relating to the product to which the label is affixed.
It has been found that most types of bar codes are capable of storing a relatively small amount of data. As a result, bar code systems have been traditionally used in the art to identify only the manufacturer, product and version of a particular item. To the contrary, bar code systems are not typically used to uniquely identify individual articles of commerce from similar articles of commerce (i.e., item-level identification). For example, bar coding may be used to identify an article as a 12 ounce can of a particular soft drink. Bar coding is not typically used to uniquely identify (i.e., distinguish) one 12 ounce can of soda from an identical 12 ounce can of soda. Because bar code systems are not designed for item-level identification, most commercially available supply chain management systems which utilize automated bar code systems have been limited to product tracking at either the carton-level or the pallet-level.
As can be appreciated, the retail industry has recently recognized that a number of considerable benefits arise from being able to uniquely identify individual articles of commerce for tracking purposes. As a result, the retail industry is currently exploring the use of supplemental means of automatic identification (other than traditional bar codes) in conjunction with supply chain management systems to accommodate product tracking at the item level.
The electronic product code (EPC) is a well-known identification coding system which has recently grown into prominence in the retail ticketing industry. The electronic product code is particularly useful in that it is capable of providing a relatively large number of unique identification codes for articles of commerce. In fact, a 96 bit electronic product code system provides unique identification codes for 268 million companies, wherein each company is able, in turn, to assign 16 million object classes and 68 billion serial numbers in each class. As can be appreciated, the implementation of a 96 bit electronic product code system in the retail industry would adequately cover all products manufactured worldwide in the present and in the immediate future.
One means for implementing the electronic product code is through the use of radio frequency identification (RFID) technology. In particular, many companies in the retail and retail ticketing industries have supplemented and in some cases replaced the use of traditional bar codes with radio frequency identification (RFID) tags, each RFID tag designed to be secured to an individual article of commerce (as well as the cartons, pallets and shipping containers which house the individual articles). When used to label an individual item, each RFID tag is assigned a unique EPC-based identification code (e.g., an EPCglobal-based code) to provide retailers with a means for uniquely identifying each item in the supply chain, as will be described further below.
RFID devices are most commonly categorized as labels or tags. Some examples of RFID tags and labels appear in U.S. Pat. Nos. 6,107,920 and 6,206,292. RFID labels are often considered to be RFID devices that are adhesive or otherwise have a surface that is attached directly to objects. RFID tags, in contrast, are secured to objects by other means, for example by use of a plastic fastener, string or other fastening means. RFID tags, labels or other marking media used in the garment and accessories retail industry can include, for example, pressure sensitive adhesive labels, heat transfer labels, printed fabric labels, woven labels, graphic hang tags, price tickets, loop tags, and pocket flashers. Identification media are referred to herein somewhat interchangeably as “labels”, “tags” or “tickets”; as used in the specification and claims, the terms “label” and “RFID label” may indicate any type of marking or identification media, and do not necessarily require that the media be directly attached to objects.
RFID devices include active tags and labels, which include a power source, and passive tags and labels, which do not. In the case of passive tags, in order to retrieve the information from the chip, a “base station” or “reader” sends an excitation signal to the RFID tag or label. The excitation signal energizes the tag or label, and the RFID circuitry transmits the stored information back to the reader. The “reader” receives and decodes the information from the RFID tag.
RFID technology provides a number of advantages over bar codes as noted above, such as increased data storage capacity and the ability to read and RFID device without requiring line of sight access to the device. On the other hand, manufacturing facilities that install RFID labeling systems must invest in potentially expensive RFID equipment and infrastructure such as printers and scanners, and some factories may choose to delay that investment. Also, as compared to bar codes which are relatively durable, RFID devices are vulnerable to damage causing corruption or loss of data. The present invention addresses these challenges in adopting and using advanced automatic identification technologies, such as RFID in combination with bar code technologies, in retail supply chain management systems.
In the retail industry, there presently exist retail supply chain management systems which are designed, among other things, to facilitate the exchange of order information amongst the various participants of a closed-loop, global supply chain. Avery Dennison Corporation of Pasadena, Calif. (hereinafter referred to simply as Avery) is widely regarded as an innovator and pioneer in the retail supply chain management systems industry. An example of one of Avery's proprietary business models for providing retail supply chain management systems is presently commercialized under the name of InfoChain Express™. InfoChain Express™ is a secure, web-based supply chain information management solution that allows all partners in the traditional retail supply chain to readily access pertinent order information (e.g., purchase order data, shipment receipts and acknowledgments, delivery schedules, advanced shipping notifications, ticket formats, etc.) in an accurate and reliable manner.
Referring now to FIG. 2, there is shown a simplified block diagram of the InfoChain Express™ business model as it relates to the participants of retail supply chain 11, the business model being identified generally by reference numeral 38. As is readily apparent, a retail supply chain management system 39 (i.e., Avery) serves as a communication hub between the various participants of retail supply chain 11, system 39 being preferably connected to each of the participants through an internet-based, electronic communication path 41. System 39 preferably comprises a server 45 which is linked to an external database 47 (e.g., through a local area network (LAN)). Although represented herein conceptually as a single database, it is to be understood that database 47 may include a plurality of linked databases.
Retail supply chain management system 39 serves to facilitate the exchange of order information between the participants of retail supply chain 11 in the following manner. Specifically, in the first step, a purchase order (i.e., an order for a retailer to purchase product from a supplier at a specified price) is electronically transmitted from supplier 15 to supply chain management system 39, this transmission step being represented generally by arrow 49 in FIG. 2. Once received by management system 39, the purchase order is stored in database 47, as represented generally by arrow 51. Preferably, the purchase order is retrievable utilizing user-friendly, highly intuitive, graphical user interface (GUI) screen displays to render the particulars of the purchase order readily apparent.
It should be noted that, as a precursor to transmission step 49, the terms and conditions of the purchase order established between retailer 13 and supplier 15 may be negotiated electronically via management system 39. In this scenario, retailer 13 electronically transmits an initial merchandise order to management system 39 in any format. In turn, server 45 translates the order and stores the order information as data records within database 47. Supplier 15 then logs into management system 39 and accesses the initial purchase order from database 47. For security purposes, supplier 15 is verified as an authorized user by means of a web-based authentication system (e.g., a standard log-in process). Having reviewed the order, supplier 15 in turn accepts or rejects the terms and conditions of the order, the response being stored in database 47 with the original order information. Retailer 13 then retrieves the response from database 47 and, if necessary, changes the terms and/or conditions of the original order until the order is accepted by both retailer 13 and supplier 15.
Upon completion of storage step 51, supply chain management system 39 releases the purchase order from database 47 to manufacturing facility 19, said release step being represented generally by arrow 53 in FIG. 2. Preferably, manufacturing facility 19 is provided with sophisticated software (supplied as part of the services provided by management system 39) that is designed to receive the purchase order and translate said order into a client-based format which can be used, in turn, to manage the process in which the product is packed for shipment, as will be described further in detail below. Once the purchase order is received and translated, manufacturing facility 19 begins its manufacturing process in accordance therewith.
In conjunction with release step 53, management system 39 additionally releases the purchase order to manufacturing facility 19 so that the production of tickets to be used in conjunction with the product (e.g., shipping labels, price tags, etc.) can commence. If manufacturing facility 19 is not suitably equipped to meet the ticketing demands, management system 39 extracts data from the purchase order and generates a corresponding ticket order which, in turn, is directed (i.e., out-sourced) to ticketing service bureau 23 (e.g., Avery's TICKET EXPRESS™ retail ticketing service), as represented generally by arrow 55 in FIG. 2. Ticketing service bureau 23, having received the ticket order from management system 39, in turn produces all the necessary tickets and ships the tickets to manufacturing facility 19, as represented generally by arrow 57 in FIG. 2.
Having received the tickets from ticketing service bureau 23, manufacturing facility 19 affixes the tickets to the manufactured product. At this time, manufacturing facility 19 commences its product packing process. In compliance with the instructions provided in the client-based purchase order, manufacturing facility 19 packs tagged articles into a particular carton. During the packing process, a scanner (e.g., a hand-held bar code scanner) that is connected to the computer system at manufacturing facility 19 is used to automatically capture the identification data associated with each tagged article. In addition, the scanner is used to automatically capture the identification data associated with the shipping label present on the carton into which the items are disposed. In this manner, the sophisticated software provided on the computer system at manufacturing facility 19 is capable of generating an advanced shipping notification (ASN) which links together the carton and the types of items contained therein with respect to the original purchase order. It should be noted that the above-described means for electronically capturing packing information is not limited to items packed within a carton. Rather, it is to be understood that the above-described means could be implemented in conjunction with any well-known packing hierarchy (e.g., packing multiple cartons within a pallet, packing multiple pallets within a shipping container, etc.) without departing from the spirit of the present invention.
With an advanced shipping notification having been created, manufacturing facility 19 electronically transmits the ASN information to management system 39, the ASN transmission step being identified generally by arrow 59. Server 45 translates the ASN data into an appropriate format (e.g., a user-friendly format) and uploads the data in database 47 in association with original purchase order, the uploading step being represented generally by arrow 61 in FIG. 2. Simultaneously, management system 39 releases the translated ASN information to designated recipients in the supply chain. For example, management system 39 may release the translated ASN information to supplier 15, retailer 13, distribution center 33 and consolidator 29, as represented generally by arrows 63, 65, 67 and 69, respectively.
The product is then delivered by manufacturing facility 19 to consolidator 29 for shipment, as represented generally by arrow 71 in FIG. 2. In compliance with the ASN, consolidator 29 ships the product to the specified retail distribution center (DC) 33 in the most efficient and economically advantageous manner, the shipping step being represented generally by arrow 72 in FIG. 2.
It should be noted that the product is preferably scanned at various stages during the shipping process, the scanned information being uploaded into centralized database 47 to provide interested parties with readily accessible and up-to-date shipment tracking information. In this manner, it is to be understood that retailer 13 may periodically track the real-time status of the pending purchase order, which is highly desirable.
In conjunction with the ASN, distribution center 33 transports the product (or a portion thereof) to retailer 13, as represented generally by arrow 73 in FIG. 2, which thereby denotes completion of the execution of the original purchase order. At this time, interested parties can review the details of the executed purchase order (from database 47) for reasons to be described in detail below (e.g., manufacturing facility efficiency, anti-divergence protection, etc.)
It is readily apparent that the above-described retail supply chain management business model 38 introduces a number of significant advantages over retail supply chain 11.
As a first advantage, the above-described business model improves the overall accuracy in which the purchase order is executed. Specifically, the business model incorporates the use of automated data capture means (e.g., bar coding) at various stages in the supply chain in order to minimize the risk of human data entry errors. Furthermore, the use of automated data capture means provides, among other things, streamlined, real-time reporting of purchase order status (as well as any purchase order modifications), verification that the product is packed properly, workload reduction for consolidator 29, improved efficiency at taking inventory at distribution center 33 and reduction in customs delays that can result in lost sales.
As a second advantage, the above-described business model establishes a direct communication link between all of the participants in the supply chain, thereby increasing the visibility of crucial order information. Because the order information is provided in an web-retrievable format, a compliance standardization is created. In other words, the nature of the system allows for all participants with internet accessibility to easily retrieve pertinent order information via widely accessible systems that do not require software downloads. By providing all of the participants with the ability to retrieve any/all pertinent data, the efficiency and overall success of the supply chain is maximized. This, in turn, enables retailer 13 to more adequately anticipate receipt of the order, thereby allowing for greater customer demand to be met in a timely manner.
As a third advantage, the above-described business model is highly reliable in nature. Specifically, management system 39 can be used to protect against unscrupulous activity, such as product tampering, product diversion and product counterfeiting, as will be described further in detail below. Furthermore, routine security updates can made to the data management software at system 39 without burdening any of the other supply chain participants.
Referring now to FIG. 3, there is shown an exploded, top perspective view of an RFID tag that is currently offered for sale by Avery Dennison Corporation of Pasadena, Calif., said RFID tag being identified generally by reference numeral 75. RFID tag 75 comprises an RFID inlay 77 that is secured to the underside of a printable face sheet (or facestock) 79 by means of a first layer of pressure sensitive adhesive 81. The underside of RFID inlay 77 is in turn releasably secured to a liner sheet 83 by means of a second layer of pressure sensitive adhesive 85 so as to form a unitary RFID tag assembly, said RFID tag assembly being identified generally by reference numeral 87.
As seen most clearly in FIG. 4, RFID inlay 77 includes a substrate 89, an antenna 91 disposed on one surface of substrate 89 and an RFID integrated circuit (IC) chip 93 coupled to antenna 91. As will be described further below, IC chip 93 is designed to generate a radio frequency signal which is in turn propagated by antenna 91.
Integrated circuit chips which are used in RFID applications are typically categorized by class. A class 0 integrated circuit chip is defined as having a memory capacity of 64 or 96 bits (this memory capacity being commonly referred to in the art as “user-defined” memory) and read only capabilities (i.e., preprogrammed with data that can be read multiple times but that can not be reprogrammed). A class 1 integrated circuit chip is defined as having a memory capacity of 64 or 96 bits and limited read/write capabilities (i.e., data can be written into said chip once but read multiple times). A class 2 integrated circuit chip is defined as having a memory capacity of 96 to 256 bits (i.e., a greater maximum memory capacity than both the class 0 and the class 1 IC chips) and unlimited read/write capabilities (i.e., can be read and reprogrammed multiple times).
For purposes of simplicity only, IC chip 93 is defined herein as being a class 1 integrated circuit chip which can be programmed a single time to include an automatic identification code. However, it is to be understood that IC chip 93 could be replaced with any other IC chip which is well-known in the art without departing from the spirit of the present invention.
Facestock 79 is preferably constructed using a print-receptive material, such as paper. During the construction of tag 75, printed matter is preferably provided onto the front surface of facestock 79 in order to communicate information relating to the product to which RFID label 75 is secured.
Liner sheet 83 includes a backing 95 and a release coating 97 applied to the top surface of backing 95. Liner sheet 83 may serve as a common web on which a plurality of RFID labels 75 are retained, with adjacent labels 75 being spaced apart from one another by a distance of approximately ⅛ to ¼ inch. In this manner, a continuous supply of label assemblies 87 can be formed into a roll which can be then be used in an assembly line environment.
Backing 95 is preferably a length of polyethylene terephthalate film, a length of Mylar® polyester film, or a strip of paper. Release coating 97 is typically a silicone or wax release from which label 75 can be manually removed, thereby exposing adhesive layer 85 of RFID label 75. Having been removed from release coating 97, RFID label 75 can be disposed against a desired article with adhesive layer 85 directly contacting the article so as to secure RFID label 75 thereto.
RFID label 75 can be used in the retail industry to wirelessly transmit data associated with a particular article to a computer system (e.g., for the purpose of taking inventory). As can be appreciated, the use of radio frequency identification technology in the retail industry has been found to introduce a number of notable advantages.
As a first advantage, the use of RFID technology allows for a large quantity of data to be exchanged within a relatively short period of time. As noted above, RFID technology supports the electronic product code which in turn can be used to assign each individual article of commerce in the world today a unique identification code. The unique identification code can in turn be used as a means for retrieving data records relating to said article from an external database.
As a second advantage, due to the simplicity and cost-effective manner in which information can be readily extracted from an integrated circuit chip, data can be extracted from an RFID label at a greater number of locations and/or with greater frequency during the supply chain. As a result, RFID technology affords a client with the capability to more adequately monitor inventory (with updates generated in real-time). Greater monitoring of inventory affords the client with greater product control (security), an increased efficiency in supplying/stocking retailer 13 with the proper amount of product (i.e., greater efficiency in managing safety-stock inventory) and a greater ability to locate a product (e.g., within a large warehouse).
As a third advantage, the use of RFID technology eliminates the need for a direct line of sight during the automatic exchange of data (which is presently required in bar code systems). In fact, because many conventional RFID systems operate in a range of several meters, there is often little need for the handling of individual articles during the data exchange process. Because human involvement is minimized during the data exchange process, the risk of human error introducing data inaccuracies can be significantly reduced.
As a fourth advantage, RFID technology is effective in visually and environmentally challenging conditions. For example, because the RFID inlay is sealed within the tag, the IC chip is adequately protected from harsh outside elements. To the contrary, traditional bar codes are directly exposed to outside elements which can compromise their integrity and, as a consequence, their functionality.
As a fifth advantage, because RFID technology allows for the extraction of data automatically, labor costs typically associated with the exchange of data in the retail industry can be minimized.
Further advantages associated with the use of RFID technology in retail environments are described in U.S. Patent Application Publication No. 2002/0038267 to N. Can et al., and U.S. Patent Application Publication No. 2003/0132854 to R. J. Swan et al., both of said publications being incorporated herein by reference.
Despite all of the advantages associated with RFID technology that were described in detail above, applicant has discovered a number of less obvious drawbacks associated with the use of RFID technology in the retail industry.
As a first drawback, participants in the retail supply chain often lack the significant capital that is required to purchase RFID equipment (e.g. RFID readers). Without the necessary RFID equipment, these participants are unable to extract the unique identification code that is assigned to an RFID label.
As a second drawback, in the event that RFID chip 91 should malfunction (e.g., fail to operate as the result of either intentional or unintentional chip damage), participants in the retail supply chain are precluded from retrieving the data stored on the RFID label.
As a third drawback, in the event that RFID chip 91 has been tampered with (e.g., by an unscrupulous customer seeking to circumvent the security applications of RFID technology), participants in the retail supply chain are precluded from retrieving the data stored on the RFID label. Stated another way, RFID technology does not presently afford a means for verifying the authenticity of data provided by an RFID label.
As can be appreciated, the inability for participants in the supply chain to retrieve the data stored on an RFID label detrimentally affects the supply chain in two ways. First, participants in the supply chain are unable to retrieve (i.e., download) crucial product information from a central database (e.g., retrieve real-time tracking information). Second, participants in the supply chain are unable to supply (i.e., upload) pertinent product information to a central database (e.g., provide data that is used to update the real-time tracking information).